Old Republic International Corporation: Company Profile and SWOT Analysis by WMIntelligence

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									Old Republic International Corporation

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Old Republic International                                                  Financial Snapshot

Corporation                                                                 Operating Performance

Fast Facts                                                                  The company reported revenue of US$4,645.5 million
                                                                            during the fiscal year 2011 (2011). The company's
                                      307 North Michigan Avenue, Chicago,   revenue grew at a CAGR of 3.23% during 2007 -
Headquarters Address
                                      60601,United States of America        2011, with an annual growth of 13.23% over 2010. In
                                                                            2011, the company recorded an operating margin of -
Telephone                             + 1 312 3468100
                                                                            3.03%, as against 0.73% in 2010.
Fax                                   + 1 312 7260309
                                                                            Revenue and Margins
Website                               www.oldrepublic.com

Ticker Symbol, Stock Exchange         ORI, New York Stock Exchange

Number of Employees                   8,000

Fiscal Year End                       December

Revenue (in US$ million)              4,645.50




SWOT Analysis
                                                                            Return on Equity
Strengths                             Weaknesses
                                                                            The company recorded a return on equity (ROE) of -
Broad product portfolio               Increasing composite ratio            3.73% for 2011, as compared to its peers, American
                                                                            Financial Group, Inc. (AFG), Cincinnati Financial
Strong presence in the US             Weak bottom-line performance          Corporation (IAG) and XL Capital Ltd. (XL), which
                                                                            recorded ROEs of 7.55%, 3.28% and -5.04%
                                                                            respectively. The company reported an operating
Opportunities                         Threats                               margin of -3.03% in 2011.

Recovering US economy                 Catastrophic losses
                                                                            Return on Equity
US healthcare reforms and uninsured
                                      Fluctuations in interest rates
population




                                                                            Liquidity Position

                                                                            The company reported a current ratio of 0.24 in 2011,
                                                                            as compared to its peers, American Financial Group,
                                                                            Inc., Cincinnati Financial Corporation and XL Capital
                                                                            Ltd., which recorded current ratios of 0.82, 0.18 and
                                                                            0.24 respectively. As of December 2011, the
                                                                            company recorded cash and short-term investments
                                                                            of worth US$0.00 million, against zero current debt.
                                                                            The company reported a debt to equity ratio of 0.00 in
                                                                            2011 as compared to its peers, American Financial
                                                                            Group, Inc., Cincinnati Financial Corporation and XL
                                                                            Capital Ltd., which recorded debt to equity ratios of
                                                                            0.01, 0.00 and 0.00 respectively.




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Old Republic International Corporation - SWOT Profile                                                               Page 1
Old Republic International Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators ...................................................................................................................9
      2.2.1       Total Revenues and Operating Profit ................................................................................................................9
      2.2.2       Total Premiums Earned ...................................................................................................................................10
      2.2.3       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.4       Gearing Ratio ...................................................................................................................................................12
    2.3       Competitive Benchmarking ..................................................................................................................................13
      2.3.1       Market Capitalization .......................................................................................................................................14
      2.3.2       Efficiency ..........................................................................................................................................................15
      2.3.3       Total Premiums Earned ...................................................................................................................................16
      2.3.4       Asset Turnover .................................................................................................................................................17
3     Recent Developments ........................................................................................................................... 18
4     SWOT Analysis ...................................................................................................................................... 19
    4.1       SWOT Analysis - Overview ..................................................................................................................................19
    4.2       Strengths ..............................................................................................................................................................19
    4.3       Weaknesses .........................................................................................................................................................19
    4.4       Opportunities ........................................................................................................................................................20
    4.5       Threats .................................................................................................................................................................20
5     Company Statement .............................................................................................................................. 21
6     History .................................................................................................................................................... 25
7     Key Employees ...................................................................................................................................... 26
8     Key Employee Biographies................................................................................................................... 27
9     Locations and Subsidiaries .................................................................................................................. 28
    9.1       Head Office ..........................................................................................................................................................28
    9.2       Other Locations and Subsidiaries ........................................................................................................................28
10    Appendix ................................................................................................................................................ 29
    10.1      Methodology .........................................................................................................................................................29
    10.2      Ratio Definitions ...................................................................................................................................................29
    10.3      Disclaimer.............................................................................................................................................................33




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Old Republic International Corporation - SWOT Profile                                                                                                                       Page 2
Old Republic International Corporation

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List of Tables

Table 1: Major Products and Services....................................................................................................................................6
Table 2: Key Ratios - Annual ..................................................................................................................................................7
Table 3: Key Ratios - Interim ..................................................................................................................................................8
Table 4: Key Capital Market Indicators ..................................................................................................................................8
Table 5: History................................................
								
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